Victoria stands at a critical juncture in 2025, facing significant economic challenges and transformative opportunities as it charts a digitally driven path forward. Recent economic indicators show a mixed yet cautiously optimistic outlook, with the state’s economy projected to recover steadily despite current pressures. Treasurer Jaclyn Symes highlighted the pressing issue of state debt, projected to reach approximately $188 billion by 2028, noting the potential necessity for new fiscal strategies, including the consideration of increased taxes, to stabilise Victoria’s finances and manage cost-of-living pressures.
In response to these fiscal realities, Victoria has vigorously pursued digital transformation as a cornerstone of its economic strategy. The government’s Digital Strategy 2021–2026 prioritises five key sectors: advanced manufacturing and defence, health technologies and medical research, circular economy initiatives, digital technologies, and agribusiness, each critical to driving future economic resilience and innovation.
Significant public sector projects are well underway, such as the Victorian Data Reform Strategy (VDRS), which aims to significantly enhance government transparency, cybersecurity, and operational efficiency through advanced analytics, artificial intelligence, and secure data management. Additionally, Victoria is investing heavily in smart healthcare technology, aiming to streamline patient care and health service efficiency through telemedicine, digital patient records, and advanced diagnostics powered by AI.
The private sector, recognising the imperative of digital transformation, is making substantial investments to bolster Victoria’s infrastructure and economic competitiveness. Goodman Group has announced a $4 billion expansion to its data centre capacity, increasing by 500 megawatts in Melbourne and Sydney by mid-2026. Coles is also investing heavily, allocating $880 million to an Automated Distribution Centre and deploying advanced AI solutions to streamline operations and enhance productivity.
Further amplifying these efforts, Microsoft has committed A$5 billion to dramatically expand its cloud computing and AI infrastructure in Melbourne, Sydney, and Canberra, positioning Victoria at the forefront of digital innovation in the region. Greg Goodman, CEO of Goodman Group, stressed the strategic importance of these expansions, emphasising, “Our investments align directly with escalating demands for robust digital infrastructure, essential for thriving in today’s digital economy.”
Guiding and supporting these initiatives, strategic advisory partners like Solution Minds Consulting (SMC) have emerged as vital players. At SMC, we are starting to see businesses throughout Australia take action and engage us to ensure their organisation is on a clear path to success with an enterprise systems strategy. This is typically focused on the main enterprise systems or other core business systems. It includes an analysis of current issues and pain points, a consideration of future business strategy, and an analysis of enterprise system options and costs. Rob Stummer, Director of Growth at SMC, emphasised, “Digital transformation is no longer optional; it’s essential for survival. Organisations that strategically embrace digital innovation today will not only withstand current economic pressures but will also set themselves apart in the competitive market landscape of tomorrow.”
Chief economists and industry leaders express cautious optimism about Victoria’s trajectory. Renowned economist Saul Eslake advocates for prudent fiscal management alongside targeted investment in infrastructure and innovation, while Telstra CEO Vicki Brady underscores the urgency of proactive digital infrastructure investment, asserting, “Investing now in digital infrastructure is vital for realising the full economic benefits of emerging technologies like AI.”
Navigating these dual pathways of challenge and innovation, Victoria’s comprehensive strategy, encompassing public reforms, significant private sector investments, and expert guidance from smaller, independent advisory firms like SMC, positions the state for sustained economic success, resilience, and global competitiveness in the digital age.
If your organisation needs assistance navigating digital transformation or enterprise software projects, contact SMC to ensure your initiatives deliver maximum value and long-term success.
To book a free 30 minute consultation with Rob Click Here.